-----------------------------------------------------------------------
April 30, 1997
PHOENIX
FUNDS
-----------------------------------------------------------------------
ANNUAL REPORT
Phoenix Income
and Growth Fund
(Phoenix Duff & Phelps logo)
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
PHOENIX INCOME AND GROWTH FUND
INVESTOR PROFILE
Phoenix Income and Growth Fund is designed for risk-averse investors seeking
current yield and conservation of capital as well as the potential for long-
term capital appreciation.
INVESTMENT ADVISER'S REPORT
Phoenix Income and Growth Fund provided strong absolute returns for the 12
months ended April 30, 1997. Class A shares returned 10.93% and Class B
shares 10.05%. The Fund performed consistently in an increasingly volatile
market in keeping with its conservative bias. A composite index equal to 55%
of the S&P 500 Stock Index, 35% Lehman Brothers Aggregate Bond Index, and 10%
90-day Treasury bills was up 16.73%. All performance figures assume
reinvestment of dividends and exclude the effect of sales charges.
During the reporting period, the equity markets continued to post strong
gains fueled by rising corporate earnings and large cash flows into mutual
funds, coupled with strong economic growth and low inflation. Blue-chip
stocks led the way with mid- and small-sized companies significantly
underperforming their larger counterparts. Bonds posted respectable gains
with the Lehman Brothers Aggregate Bond Index returning 7.08% for the year.
Financial services and health-care holdings were the primary positive
contributors to performance. Some of the top performers included Warner
Lambert, Perkin Elmer, Western National Corporation and Rite Aid. The Fund
also benefited from continued strong relative performance of the fixed-income
segment of the portfolio. Performance was held back by a moderately low
weighting in consumer staples and poor relative performance of some cable
holdings. While the Fund's relatively conservative bias provided consistent
returns over the 12-month reporting period, it also limited performance in a
rapidly rising market.
OUTLOOK
Looking forward, the Fund's focus will continue to be on providing low-risk
equity market participation, with a bias toward providing a suitable current
yield and preservation of capital. We expect ongoing market volatility given
a Federal Reserve Board that appears resolved to contain any perceived
inflationary pressures. Our primary thematic concentration remains 21st
Century Medicine. We are also emphasizing rising energy demand through the
themes Energy Technology and Clean Energy Demand.
The fixed-income segment of the portfolio remains well-diversified, and
positioned to exploit undervalued market sectors. As of April 30, the Fund's
asset allocation was 59% equity (common stocks and convertible securities),
35% fixed-income and 6% cash equivalents.
1
<PAGE>
PHOENIX INCOME AND GROWTH FUND
(graph:plot points)
dates Income and Growth Balanced S&P 500
Fund-Class A Benchmark** Stock Index*
4/30/87 9525 10000 10000
4/30/88 9680 10048 9346
4/30/89 11783 11649 11467
4/30/90 12322 12807 12663
4/30/91 14121 14863 14896
4/30/92 16419 16680 16976
4/30/93 18847 18362 18545
4/30/94 19484 19020 19536
4/30/95 20645 21424 22950
4/30/96 24569 25666 29898
4/30/97 27255 29959 37434
Average Annual Total Returns
for Periods Ending 4/30/97
<TABLE>
<CAPTION>
From Inception
1/3/92 to
1 Year 5 Years 10 Years 4/30/97
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A with 4.75% sales charge 5.69% 9.58% 10.55% --
- --------------------------------------------------------------------------------
Class A at net asset value 10.93% 10.67% 11.09% --
- --------------------------------------------------------------------------------
Class B with CDSC 6.14% 9.88% -- 9.79%
- --------------------------------------------------------------------------------
Class B at net asset value 10.05% 9.88% -- 9.79%
- --------------------------------------------------------------------------------
Balanced Benchmark** 16.73% 12.43% 11.60% 11.82%***
- --------------------------------------------------------------------------------
S&P 500 Stock Index* 25.20% 17.14% 14.11% 20.11%***
- --------------------------------------------------------------------------------
</TABLE>
This chart assumes an initial investment of $10,000 made on April 30, 1987
for Class A shares. The total return for Class A shares reflects the maximum
sales charge of 4.75% on the initial investment and assumes reinvestment of
dividends and capital gains. Class B share performance will be greater or
less than that shown based on differences in inception date, fees and sales
charges. The total return (since inception 1/3/92) for Class B shares reflect
the 5% contingent deferred sales charge (CDSC), which is applicable on all
shares redeemed during the 1st year after purchase and 4% for all shares
redeemed during the 2nd year after purchase (scaled down to 3%-3rd year,
2%-4th and 5th year and 0% thereafter). Returns indicate past performance,
which is not predictive of future performance. Investment return and net
asset value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
Foreign investing involves special risks, such as currency fluctuation and
less public disclosure as well as economic and political risks.
*The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
total return performance. The S&P 500's performance does not reflect sales
charges.
**The Balanced Benchmark is calculated based upon the performance of the
following indices: 55% S&P 500/35% Lehman Brothers Aggregate Bond
Index/10% U.S. Treasury bills and is produced by Frank Russell Company.
The index's performance does not reflect sales charges.
***Index information from 1/1/92 to 4/30/97.
2
<PAGE>
Phoenix Income and Growth Fund
INVESTMENTS AT APRIL 30, 1997
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ --------- ---------------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--7.3%
U.S. Treasury Notes--3.9%
U.S. Treasury Notes 7.375%, '97 AAA $ 5,000 $ 5,040,200
U.S. Treasury Notes 5.25%, '98 AAA 2,250 2,229,210
U.S. Treasury Notes 5%, '99 .. AAA 15,700 15,371,273
U.S. Treasury Notes 6%, '99 .. AAA 2,000 1,984,374
U.S. Treasury Notes 6.375%, '01 AAA 5,000 4,973,200
U.S. Treasury Strip, P.O., 0%, '17 AAA 10,000 2,428,000
---------------
32,026,257
---------------
Agency Mortgage-Backed Securities--3.4%
GNMA 6.50%, '23-'24 .......... AAA 30,034 28,382,781
---------------
TOTAL U.S. GOVERNMENT AND
AGENCY SECURITIES
(Identified cost $61,120,080) ............................... 60,409,038
---------------
NON-CONVERTIBLE BONDS--14.2%
Asset-Backed Securities--1.3%
Airplanes Pass Through Trust
1D 10.875%, '19 ............. BB 1,400 1,547,784
Fleetwood Credit Corp. 96-B,
Class A 6.90%, '12 .......... AAA 2,419 2,421,288
Green Tree Financial Corp.
96-4, A6 7.40%, '27 ......... AAA 1,500 1,489,687
Green Tree Financial Corp.
96-2, M1 7.60%, '27 ......... AA- 3,325 3,306,297
Green Tree Financial Corp.
96-4, M1 7.75%, '27 ......... AA- 1,500 1,527,188
---------------
10,292,244
---------------
Entertainment, Leisure & Gaming--1.5%
Turner Broadcasting 8.375%,
'13 ......................... BB+ 3,000 3,008,670
Viacom International Sub.
Debenture 8%, '06 ........... BB- 10,000 9,300,000
---------------
12,308,670
---------------
Hospital Management & Services--0.6%
Tenet Healthcare Corp. Sr.
Note 9.625%, '02 ........... BB 5,000 5,312,500
---------------
Lodging & Restaurants--0.6%
Host Marriott Travel Plaza,
Inc. 9.50%, '05 ............. BB- 5,000 5,112,500
---------------
Non-Agency Mortgage-Backed Securities--7.1%
DLJ Mortgage Acceptance
Corp. 96-CF1, A1B 144A
7.58%, '28 (b) .............. AAA 1,400 1,426,688
G.E. Capital Mortgage Service
94-9, M 6.50%, '24 .......... AA 11,576 10,530,635
G.E. Capital Mortgage Service
96-8, M 7.25%, '26 .......... AA 496 479,258
Non-Agency Mortgage-Backed Securities--continued
Lehman Structured Securities
Corp. 96-1, E-1 7.995%, '26. NR $ 2,987 $ 3,022,139
Nationslink Funding Corp.
96-1, B 7.69%, '05 .......... AA 1,500 1,523,438
Prudential Home Mortgage
Securities 94-15, M 6.80%,
'24 ......................... Aa(d) 8,466 7,841,758
Residential Asset
Securitization Trust 96-A8,
A1 8%, '26 .................. AAA 3,535 3,564,838
Residential Funding Mortgage
96-S1, A11 7.10%, '26 ....... AAA 2,800 2,691,063
Residential Funding Mortgage
96-S4, M1 7.25%, '26 ........ AA 2,970 2,862,194
Resolution Trust Corp. 92-C8,
D 8.835%, '23 ............... BBB- 7,206 7,388,547
Resolution Trust Corp. 95-C2,
B 6.80%, '27 ................ Aa(d) 5,866 5,649,551
Securitized Asset Sales 93-J,
2B 6.808%, '23 .............. A(d) 4,447 4,128,880
Structured Asset Securities
Corp. 95-C1, C 7.375%, '24 .. A 2,500 2,491,406
Structured Asset Securities
Corp. 95-C4, B 7%, '26 ...... AA 5,198 5,134,359
---------------
58,734,754
---------------
Paper & Forest Products--0.6%
Buckeye Cellulose Corp.
8.50%, '05 ................. BB- 5,000 4,900,000
---------------
Publishing, Broadcasting, Printing & Cable--0.3%
Cablevision Systems Corp.
9.875%, '06 ................ B 2,500 2,500,000
---------------
REITS--0.4%
Meditrust Corp. 7.375%, '00 .. BBB- 3,000 3,003,300
---------------
Telecommunications Equipment--1.0%
Rogers Cablesystems Ltd.
9.625%, '02 ................ BB+ 8,000 8,230,000
---------------
Textile & Apparel--0.6%
Westpoint Stevens 8.75%, '01 BB- 5,000 5,087,500
---------------
Truckers & Marine--0.2%
Teekay Shipping Corp.
8.32%, '08 .................. BB 1,645 1,612,100
---------------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $117,588,629) .............................. 117,093,568
---------------
FOREIGN GOVERNMENT SECURITIES--4.6%
Argentina--1.1%
Republic of Argentina Bearer
FRB 6.75%, '05 (e) ......... BB- 728 668,391
</TABLE>
See Notes to Financial Statements
3
<PAGE>
Phoenix Income and Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ --------- ---------------
<S> <C> <C> <C>
Argentina--continued
Republic of Argentina
Discount L-GL Euro
6.375%, '23 (e) ............. BB- $ 5,850 $ 4,840,875
Republic of Argentina Global
Bond 11.375%, '17 ........... BB 1,000 1,062,250
Republic of Argentina Par
L-GP 5.25%, '23 (e) ......... BB- 4,000 2,610,000
---------------
9,181,516
---------------
Brazil--0.6%
Republic of Brazil DCB-L
Euro 6.938%, '12 (e) ........ B+ 3,100 2,472,250
Republic of Brazil Discount
Z-L Euro 6.875%, '24 (e) .... B+ 3,125 2,517,578
---------------
4,989,828
---------------
Colombia--0.2%
Republic of Colombia Euro
9%, '97 ..................... BBB- 1,500 1,500,315
---------------
Mexico--0.8%
United Mexican States 144A
7.625%,'01 (b) (e) .......... Baa(d) 1,600 1,620,800
United Mexican States
Discount A 6.867%,
'19 (e) (f) ................. BB 500 443,125
United Mexican States Euro D
6.352%,'19 (e) (f) .......... BB 1,500 1,329,375
United Mexican States Series
B Euro 6.25%, '19 (f) ....... BB 4,250 3,089,218
---------------
6,482,518
---------------
Morocco--0.4%
Morocco R&C Agreement
Series A 6.375%, '09 (e) .... NR 3,800 3,344,000
---------------
Panama--0.3%
Panama IRB Series 18 Yr.
3.50%, '14 (e) .............. BB+ 1,700 1,261,187
Panama PDI 6.563%, '16 (e) ... BB+ 1,521 1,299,267
---------------
2,560,454
---------------
Poland--0.4%
Poland Discount Euro 6.938%,
'24 (e) .................... BBB- 1,250 1,215,625
Poland PDI B 4%, '14 (e) ..... BBB- 3,000 2,445,000
---------------
3,660,625
---------------
Venezuela--0.8%
Republic of Venezuela
Discount 6.813%, '20 (e) (f) Ba 5,100 4,197,938
Republic of Venezuela Par
6.75%, '20 (f) .............. Ba 2,150 1,560,093
---------------
5,758,031
---------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $35,434,582) ............................... 37,477,287
---------------
FOREIGN NON-CONVERTIBLE BONDS--1.0%
Chile--0.4%
CSAV 7.3751%, '03
(Industrial) ................ BBB $ 580 $ 561,150
Petropower I Funding 144A
7.36%, '14 (Utility-Gas) (b) BBB 2,400 2,254,440
---------------
2,815,590
---------------
Indonesia--0.3%
Asia Pulp & Paper Co. Yankee
11.75%, '05 (Paper &
Forest Products) ............ BB 2,500 2,640,625
---------------
Netherlands--0.3%
Astra Overseas Financial
144A 8.75%, '03
(Diversified Financial
Services) (b) ............... NR 2,500 2,525,000
---------------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $7,928,265) ................................ 7,981,215
---------------
MUNICIPAL BONDS--2.7%
California--2.7%
Kern County Pension Oblig.
Taxable 7.26%, '14 .......... AAA 4,350 4,181,263
Long Beach Pension Oblig.
Taxable 6.87%, '06 .......... AAA 3,000 2,941,620
Orange County Pension Series
A Taxable 7.60%, '08 ........ AAA 4,520 4,583,325
Sacramento County 95-A
Taxable 6.625%, '06 ......... AAA 3,400 3,275,900
San Bernardino County Oblig.
Revenue Taxable 6.87%, '08 .. AAA 1,335 1,291,906
San Bernardino County Oblig.
Revenue Taxable 6.94%, '09 .. AAA 3,625 3,516,613
Ventura County Pension
Taxable 6.54%, '05 .......... AAA 2,200 2,127,774
---------------
21,918,401
---------------
TOTAL MUNICIPAL BONDS
(Identified cost $22,405,166) ............................... 21,918,401
---------------
CONVERTIBLE BONDS--9.0%
Autos & Trucks--0.1%
Volkswagen Cv. 144A 3%,
'02 (Germany) (b) ........... NR 1,000 1,240,000
---------------
Computer Software & Services--0.3%
Macronix International Co. Cv.
1%, '07 ..................... NR 2,000 2,150,000
---------------
Electrical Equipment--0.1%
Itron, Inc. Cv. 144A 6.75%,
'04 (b) ..................... NR 1,000 1,075,000
---------------
Entertainment, Leisure & Gaming--0.8%
Comcast Corp. Cv. (SIRENS)
3.375%, '05 (e) ............. BB- 7,500 6,825,000
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Phoenix Income and Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ --------- ---------------
<S> <C> <C> <C>
Food--1.6%
Grand Metropolitan PLC Cv.
144A 6.50%, '00 (United
Kingdom) (b) ................ A+ $10,750 $13,222,500
---------------
Healthcare--Diversified--0.8%
Roche Holdings, Inc. Cv. 144A
0%, '12 (Switzerland) (b) ... NR 5,500 2,145,000
Sandoz Capital BVI Ltd. Cv. 144A
2%, '02 (Switzerland) (b) ... NR 3,500 4,383,750
---------------
6,528,750
---------------
Hospital Management & Services--0.7%
Tenet Healthcare Cv. 6%, '05 . B+ 5,000 6,075,000
---------------
Insurance--0.1%
Chubb Corp. Cv. 6%, '98 ...... AA 1,000 1,285,000
---------------
Medical Products & Supplies--0.2%
Heartport, Inc. Cv. 144A
7.25%, '04 (b) .............. NR 1,250 1,312,500
---------------
Metals & Mining--0.2%
Still Water Mining Cv. 7%, '03 NR 1,500 1,522,500
---------------
Natural Gas--1.5%
Apache Corp. Cv. 144A 6%,
'02 (b) ...................... BBB- 6,000 7,192,500
Consolidated Natural Gas Co.
Cv. 7.25%, '15 .............. A+ 5,300 5,604,750
---------------
12,797,250
---------------
Office & Business Equipment--0.2%
Comverse Technology Cv.
144A 5.75%, '06 (b) ......... NR 1,250 1,343,750
---------------
Oil Service & Equipment--0.3%
Nabors Industries, Inc. Cv.
5%, '06 ..................... BBB- 2,000 2,450,000
---------------
Pollution Control--0.5%
WMX Technologies, Inc. Sub.
Notes Cv. 2%, '05 ........... A 4,350 3,762,750
---------------
Publishing, Broadcasting, Printing & Cable--0.4%
Times Mirror Co. Cv. 144A
0%, '17 (b) ................. NR 7,500 2,971,875
---------------
REITS--2.0%
Health Care Property, Inc. Cv.
144A 6%, '00 (b) ............ BBB 1,500 1,477,500
---------------
Retail--0.2%
Home Depot, Inc. Cv. 3.25%,
'01 .......................... A+ 2,000 2,047,500
---------------
Retail--Drug--0.6%
Rite Aid Corp. Cv. 0%, '06 ... BBB 7,000 5,171,250
---------------
Telecommunications Equipment--0.2%
BBN Corp. Cv. 6%, '12 ........ B(d) 1,650 1,608,750
---------------
TOTAL CONVERTIBLE BONDS
(Identified cost $69,484,223) ............................... 74,866,875
---------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS--12.1%
Banks--0.6%
H. F. Ahmanson & Co. Series D Cv.
Pfd. 6% ................................ 60,000 $ 4,740,000
--------------
Chemical--0.2%
Merrill Lynch, IGL (STRYPES) 6.25% 35,000 1,356,250
--------------
Computer Software & Services--0.5%
Microsoft Corp. Series A Cv. Pfd.
$2.196 ................................. 50,500 4,324,063
--------------
Conglomerates--0.4%
Rouse Co. Series B Cv. Pfd. $3.00 39,000 1,769,625
USX Corp. Cv. Pfd. 6.75% ................ 75,000 1,556,250
--------------
3,325,875
--------------
Diversified Financial Services--0.3%
Morgan Stanley Group, TBR (PERQS)
6% ..................................... 40,000 2,830,000
--------------
Electronics--0.3%
Morgan Stanley Group, AMD (PERQS)
10% .................................... 51,800 2,078,475
--------------
Entertainment, Leisure & Gaming--0.5%
Mattel, Inc. Series C Cv. Pfd. $0.4125 320,000 3,680,000
--------------
Lodging & Restaurants--0.6%
Felcor Suite Hotels, Inc. Series A Cv.
Pfd. $1.95 ............................. 51,000 1,453,500
Host Marriott Financial Trust Cv. Pfd.
144A 6.75% (b) ......................... 60,000 3,345,000
--------------
4,798,500
--------------
Machinery--0.7%
Cooper Industries, Wyman notes (DECS)
6% ..................................... 325,000 6,134,375
--------------
Metals & Mining--1.4%
Coeur d'Alene Cv. Pfd. 7% ............... 210,000 3,386,250
Freeport-McMoRan Copper Cv. Pfd.
7% ..................................... 150,000 4,050,000
Inco Limited Cv. Pfd. Series E 5.50%
(Canada) ............................... 46,700 2,352,513
Titanium Metals Cv. Pfd. 144A
6.625% (b) ............................. 30,000 1,380,000
--------------
11,168,763
--------------
Oil--3.0%
Occidental Petroleum Corp. Cv. Pfd.
144A $3.875 (b)............. 220,000 12,045,000
Tosco Financing Trust Cv. Pfd. 144A
5.75% (b) .............................. 16,000 876,000
Unocal Corp. Cv. Pfd. 6.25% .. 176,100 9,597,450
Valero Energy Corp. Cv. Pfd. $3.125 ..... 30,500 1,982,500
--------------
24,500,950
--------------
Oil Service & Equipment--0.5%
Mesa, Inc. Series A PIK 8%... 688,500 4,389,187
--------------
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Phoenix Income and Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------
<S> <C> <C>
Publishing, Broadcasting, Printing & Cable--0.9%
Cablevision Systems Corp. Series I Cv.
Pfd. 8.50% .............................. 165,000 $ 3,650,625
Merrill Lynch, Cox (STRYPES) 6% .......... 215,000 4,246,250
--------------
7,896,875
--------------
Telecommunications Equipment--0.7%
Qualcomm, Inc. 144A Cv. Pfd.
5.75% (b) ............................... 77,000 3,426,500
TCI Pacific Communications Pfd. 5% ....... 25,000 2,356,250
--------------
5,782,750
--------------
Utility--Electric--0.5%
AES Trust I Series A Cv. Pfd. 5.375% ..... 30,000 1,638,750
California Energy Capital Trust Cv. Pfd.
6.25% ................................... 35,000 2,476,250
--------------
4,115,000
--------------
Utility--Gas--0.5%
MCN Energy Group, Inc. Cv. Pfd.
8.75% ................................... 148,100 3,943,163
--------------
Utility--Telephone--0.5%
US West, Inc. Series D Cv. Pfd. 4.50% .... 90,000 4,016,250
--------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $95,703,645) ...................... 99,080,476
--------------
PREFERRED STOCKS--4.9%
Banks--0.5%
Fleet Financial Group, Inc. Pfd. 9.30% ... 150,000 3,862,500
--------------
Insurance--0.5%
Aon Corp. 8% Pfd. ........................ 166,500 4,224,937
--------------
Natural Gas--0.7%
Enron Capital $2.00 Pfd. Series C ........ 225,000 5,596,875
--------------
Publishing, Broadcasting, Printing & Cable--1.2%
News Corp. Overseas Ltd. Series A
8.625% Pfd. ............................. 400,000 10,050,000
--------------
REITS--2.0%
Home Ownership Funding 2 Step-down
Pfd. 144A 13.338% (b) ................... 5,000 4,899,880
Marquette Real Estate Fund Step-down Pfd.
144A 13.701% (b) ........................ 12,000 11,805,120
--------------
16,705,000
--------------
TOTAL PREFERRED STOCKS
(Identified cost $41,035,550) ...................... 40,439,312
--------------
COMMON STOCKS--34.3%
Advertising--1.0%
Interpublic Group Companies, Inc. ........ 75,200 4,258,200
Omnicom Group, Inc. ...................... 81,600 4,324,800
--------------
8,583,000
--------------
Banks--1.6%
BankAmerica Corp. ........................ 14,700 1,718,062
Barnett Banks, Inc. ...................... 124,790 6,099,111
Banks--continued
Chase Manhattan Corp. .................... 17,000 $ 1,574,625
Citicorp ................................. 17,900 2,015,988
Mellon Bank Corp. ........................ 25,600 2,128,000
--------------
13,535,786
--------------
Beverages--0.5%
PepsiCo, Inc. ............................ 121,600 4,240,800
--------------
Chemical--Specialty--0.7%
Praxair, Inc. ............................ 114,100 5,890,412
--------------
Computer Software & Services--0.3%
Computer Associates International, Inc. .. 42,200 2,194,400
--------------
Conglomerates--0.4%
Thermo Electron Corp. (c) ................ 94,100 3,246,450
--------------
Cosmetics & Soaps--0.6%
Colgate Palmolive Co. .................... 46,900 5,205,900
--------------
Diversified Miscellaneous--0.9%
Hillenbrand Industries, Inc. ............. 113,400 4,876,200
Jostens, Inc. ............................ 98,000 2,339,750
--------------
7,215,950
--------------
Electronics--5.2%
Intel Corp. .............................. 22,400 3,430,000
LSI Logic Corp. (c) ...................... 112,100 4,287,825
Perkin Elmer Corp. ....................... 431,400 31,330,425
Tektronix, Inc. .......................... 61,300 3,317,863
--------------
42,366,113
--------------
Healthcare--Diversified--0.7%
Warner-Lambert Co. ....................... 61,100 5,987,800
--------------
Healthcare--Drugs--1.7%
Amgen, Inc. (c) .......................... 86,900 5,116,238
Genzyme Corp. (c) ........................ 180,200 4,167,125
Merck & Co., Inc. ........................ 50,000 4,525,000
--------------
13,808,363
--------------
Hospital Management & Services--1.0%
Oxford Health Plans (c) .................. 51,800 3,412,325
Pacificare Health Systems, Inc.
Class B (c) ............................. 24,500 1,966,125
United Healthcare Corp. .................. 54,400 2,645,200
--------------
8,023,650
--------------
Insurance--3.0%
Aetna, Inc. .............................. 44,200 4,027,725
Allstate Corp. ........................... 39,200 2,567,600
Chubb Corp. .............................. 137,300 7,929,075
ITT Hartford Group, Inc. ................. 55,300 4,119,850
Western National Corp. ................... 206,000 5,304,500
--------------
23,948,750
--------------
Medical Products & Supplies--2.1%
Baxter International, Inc. ............... 182,600 8,741,975
Johnson & Johnson ........................ 60,000 3,675,000
U.S. Surgical Corp. ...................... 119,125 4,080,031
--------------
16,497,006
--------------
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Phoenix Income and Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<S> <C> <C>
Metals & Mining--2.6%
Alumax, Inc. (c) ............................ 45,500 $ 1,660,750
Aluminum Company of America ................. 121,200 8,468,850
Century Aluminum Co. ........................ 152,100 2,509,650
Kaiser Aluminum Corp. (c) ................... 148,200 1,593,150
Reynolds Metals Co. ......................... 29,800 2,022,675
Stillwater Mining Co. (c) ................... 274,300 5,520,288
-----------
21,775,363
-----------
Natural Gas--3.8%
Burlington Resources, Inc. .................. 57,400 2,432,325
Columbia Gas System, Inc. ................... 40,000 2,475,000
Consolidated Natural Gas Co. ................ 46,400 2,337,400
Enron Corp. ................................. 105,600 3,973,200
Equitable Resources, Inc. ................... 85,600 2,535,900
KN Energy, Inc. ............................. 51,800 1,929,550
New Jersey Resources Corp. .................. 58,300 1,683,412
Questar Corp. ............................... 51,800 1,968,400
Tejas Gas Corp. (c) ......................... 51,800 2,149,700
Washington Gas Light Co. .................... 79,700 1,833,100
Williams Companies, Inc. .................... 173,650 7,618,894
-----------
30,936,881
-----------
Office & Business Equipment--0.5%
Seagate Technology, Inc. (c) ................ 94,930 4,354,898
-----------
Oil--1.9%
Barrett Resources Corp. (c) ................. 128,500 4,208,375
NGC Corp. ................................... 170,800 3,010,350
Noble Affiliates, Inc. ...................... 114,000 4,075,500
USX-Marathon Group .......................... 102,900 2,842,612
Valero Energy Corp. ......................... 43,100 1,513,888
-----------
15,650,725
-----------
Oil Service & Equipment--2.3%
Baker Hughes, Inc. .......................... 132,600 4,574,700
Diamond Offshore Drilling, Inc. (c) ......... 15,000 965,625
ENSCO International, Inc. (c) ............... 87,600 4,161,000
Noble Drilling Corp. (c) .................... 193,123 3,355,512
Parker Drilling Co. (c) ..................... 131,200 1,016,800
Precision Drilling Corp. (c) ................ 20,300 705,425
Reading & Bates Corp. (c) ................... 106,200 2,376,225
Tidewater, Inc. ............................. 50,400 2,022,300
-----------
19,177,587
-----------
Pollution Control--0.8%
Republic Industries, Inc. (c) ............... 187,600 4,654,825
WMX Technologies, Inc. ...................... 67,700 1,988,688
-----------
6,643,513
-----------
Professional Services--0.0%
CellNet Data Systems (c) ...................... 24,000 180,000
-----------
REITS--0.9%
IRT Property Co. .............................. 150,000 1,706,250
Meditrust Corp. ............................... 96,296 3,514,804
Patriot American Hospitality .................. 110,000 2,365,000
-----------
7,586,054
-----------
Telecommunications Equipment--0.8%
Cisco Systems, Inc. (c) ....................... 39,500 $ 2,044,125
Motorola, Inc. ................................ 72,600 4,156,350
-----------
6,200,475
-----------
Truckers & Marine--0.1%
Hvide Marine, Inc. Class A (c) ................ 51,000 879,750
-----------
Utility--Electric--0.6%
CMS Energy Corp. .............................. 150,000 4,762,500
-----------
Utility--Gas--0.3%
Eastern Enterprises ........................... 50,000 1,693,750
MCN Energy Group, Inc. ........................ 35,900 1,027,637
-----------
2,721,387
-----------
TOTAL COMMON STOCKS
(Identified cost $234,305,839) ................................ 281,613,513
-----------
FOREIGN COMMON STOCKS--4.2%
Banks--0.5%
Credit Communial Holding/Dexia 144A
(Belgium) (b) (c) ............................ 38,000 3,801,140
-----------
Beverages--0.5%
PanAmerican Beverages, Inc. Class A
(Mexico) ..................................... 155,800 4,518,200
-----------
Engineering & Construction--0.2%
Chicago Bridge & Iron Co. NV
(Netherlands)(c) .............................. 75,000 1,275,000
-----------
Insurance--0.6%
GCR Holdings Ltd. (Bermuda) ................... 40,000 865,000
LaSalle Re Holdings Ltd. (Bermuda) ............ 40,000 1,110,000
Mid Ocean Ltd. (Bermuda) ...................... 20,000 917,500
Partner Re Ltd. (Bermuda) ..................... 35,000 1,176,875
Renaissancere Holdings Ltd. (Bermuda) ......... 30,000 1,110,000
-----------
5,179,375
-----------
Oil--0.4%
Ensign Resource Service Group, Inc.
(Canada) (c) ................................. 45,000 788,796
Shell Transport & Trading Co. ADR
(United Kingdom) ............................. 23,000 2,446,625
-----------
3,235,421
-----------
Rails--0.6%
Canadian Pacific Ltd. (Canada) ................ 195,500 4,765,313
-----------
Truckers & Marine--0.4%
Knightsbridge Tankers Ltd. (Bermuda) .......... 150,000 3,412,500
-----------
Utility--Telephone--1.0%
BCE, Inc. (Canada) ............................ 175,000 8,159,375
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $29,891,217) ................................. 34,346,324
-----------
TOTAL LONG-TERM INVESTMENTS--94.3%
(Identified cost $714,897,196) ................................ 775,226,009
-----------
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Phoenix Income and Growth Fund
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ --------- ---------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.0%
Commercial Paper--1.0%
Vermont American Corp.
5.52%, 5-1-97 .................. A-1+ $ 3,985 $ 3,985,000
Du Pont (E.I) De Nemours &
Co. 5.28%, 5-5-97 .............. A-1+ 85 84,950
Preferred Receivables Funding
Corp. 5.50%, 5-7-97 ............ A-1 2,795 2,792,438
Campbell Soup Co. 5.50%,
5-8-97 ......................... A-1+ 1,510 1,508,385
--------------
8,370,773
--------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
---------------
<S> <C>
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $8,370,773) ................. $ 8,370,773
--------------
TOTAL INVESTMENTS--95.3%
(Identified cost $723,267,969) ............... 783,596,782(a)
Cash and receivables, less liabilities--4.7% . 38,770,707
--------------
NET ASSETS--100.0% ............................ $822,367,489
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $75,942,538 and gross
depreciation of $16,167,455 for income tax purposes. At April 30, 1997,
the aggregate cost of securities for federal income tax purposes was
$723,821,699.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30,
1997, these securities amount to a value of $85,769,943 or 10.4% of net
assets.
(c) Non-income producing.
(d) As rated by Moody's, Fitch or Duff & Phelps.
(e) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(f) Rights incorporated as a unit.
See Notes to Financial Statements
8
<PAGE>
Phoenix Income and Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $723,267,969) $783,596,782
Cash 137,964
Receivables
Investment securities sold 38,042,993
Fund shares sold 159,269
Dividends and interest 5,112,934
---------------
Total assets 827,049,942
---------------
Liabilities
Payables
Investment securities purchased 2,145,605
Fund shares repurchased 1,294,641
Investment advisory fee 466,606
Distribution fee 392,443
Transfer agent fee 183,927
Financial agent fee 20,438
Trustees' fee 4,516
Accrued expenses 174,277
---------------
Total liabilities 4,682,453
---------------
Net Assets $822,367,489
===============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $732,477,810
Undistributed net investment income 2,320,683
Accumulated net realized gain 27,240,183
Net unrealized appreciation 60,328,813
---------------
Net Assets $822,367,489
===============
Class A
Shares of beneficial interest outstanding, $0.0001 par
value, unlimited authorization
(Net Assets $451,438,500) 45,801,216
Net asset value per share $9.86
Offering price per share
$9.86/(1-4.75%) $10.35
Class B
Shares of beneficial interest outstanding, $0.0001 par
value, unlimited authorization
(Net Assets $370,928,989) 37,580,543
Net asset value and offering price per share $9.87
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1997
<TABLE>
<S> <C>
Investment Income
Interest $28,309,597
Dividends 14,393,420
--------------
Total investment income 42,703,017
--------------
Expenses
Investment advisory fee 5,982,415
Distribution fee--Class A 1,178,775
Distribution fee--Class B 3,831,208
Financial agent 256,528
Transfer agent 1,333,163
Printing 135,492
Custodian 88,002
Registration 54,150
Professional 52,219
Trustees 22,674
Miscellaneous 32,923
--------------
Total expenses 12,967,549
--------------
Net investment income 29,735,468
--------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 58,030,503
Net realized loss on foreign currency transactions (63,547)
Net change in unrealized appreciation (depreciation)
on investments (2,222,870)
--------------
Net gain on investments 55,744,086
--------------
Net increase in net assets resulting from operations $85,479,554
==============
</TABLE>
See Notes to Financial Statements
9
<PAGE>
Phoenix Income and Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
April 30, 1997 April 30, 1996
--------------- ---------------
<S> <C> <C>
From Operations
Net investment income $ 29,735,468 $ 36,235,156
Net realized gain 57,966,956 74,561,424
Net change in unrealized appreciation (depreciation) (2,222,870) 41,747,703
--------------- ---------------
Increase in net assets resulting from operations 85,479,554 152,544,283
--------------- ---------------
From Distributions to Shareholders
Net investment income--Class A (18,481,864) (21,775,957)
Net investment income--Class B (12,058,093) (13,920,528)
Net realized gains--Class A (39,142,002) (1,790,547)
Net realized gains--Class B (31,924,691) (1,413,822)
--------------- ---------------
Decrease in net assets from distributions to shareholders (101,606,650) (38,900,854)
--------------- ---------------
From Share Transactions
Class A
Proceeds from sales of shares (3,227,767 and 4,186,098 shares, respectively) 32,305,915 40,001,714
Net asset value of shares issued from reinvestment of distributions
(4,817,814 and 1,892,290 shares, respectively) 47,024,383 18,094,132
Cost of shares repurchased (11,192,137 and 12,338,773 shares, respectively) (112,400,718) (118,161,444)
--------------- ---------------
Total (33,070,420) (60,065,598)
--------------- ---------------
Class B
Proceeds from sales of shares (2,616,679 and 3,371,066 shares, respectively) 26,139,385 32,278,099
Net asset value of shares issued from reinvestment of distributions
(3,430,811 and 1,165,398 shares, respectively) 33,531,068 11,169,191
Cost of shares repurchased (7,729,516 and 8,800,122 shares, respectively) (77,728,213) (84,143,012)
--------------- ---------------
Total (18,057,760) (40,695,722)
--------------- ---------------
Decrease in net assets from share transactions (51,128,180) (100,761,320)
--------------- ---------------
Net increase (decrease) in net assets (67,255,276) 12,882,109
Net Assets
Beginning of period 889,622,765 876,740,656
--------------- ---------------
End of period (including undistributed net investment income of $2,320,683 and
$2,996,598, respectively) $ 822,367,489 $ 889,622,765
=============== ===============
</TABLE>
See Notes to Financial Statements
10
<PAGE>
Phoenix Income and Growth Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------
Year Ended April 30,
1997 1996 1995 1994 1993
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.08 $8.88 $9.33 $9.92 $9.13
Income from investment operations:
Net investment income 0.40 0.44 0.46 0.45 0.43
Net realized and unrealized gain (loss) 0.66 1.22 0.03 (0.08) 0.88
-------- -------- -------- --------- --------
Total from investment operations 1.06 1.66 0.49 0.37 1.31
-------- -------- -------- --------- --------
Less distributions:
Dividends from net investment income (0.40) (0.42) (0.45) (0.44) (0.44)
Dividends from net realized gains (0.88) (0.04) (0.33) (0.52) (0.08)
In excess of accumulated net realized gains -- -- (0.16) -- --
-------- -------- -------- --------- --------
Total distributions (1.28) (0.46) (0.94) (0.96) (0.52)
-------- -------- -------- --------- --------
Change in net asset value (0.22) 1.20 (0.45) (0.59) 0.79
-------- -------- -------- --------- --------
Net asset value, end of period $9.86 $10.08 $8.88 $9.33 $9.92
======== ======== ======== ========= ========
Total return(2) 10.93% 19.01% 5.95% 3.38% 14.78%
Ratios/supplemental data:
Net assets, end of period (thousands $451,439 $493,454 $490,225 $524,855 $514,803
Ratio to average net assets of:
Expenses 1.18% 1.18% 1.16% 1.23% 1.33%
Net investment income 3.82% 4.39% 5.07% 4.57% 4.60%
Portfolio turnover 111% 107% 90% 88% 44%
Average commission rate paid(3) $0.0515 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------------------------
Year Ended April 30,
1997 1996 1995 1994 1993
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.09 $8.88 $9.32 $9.92 $9.13
Income from investment operations:
Net investment income 0.31 0.36 0.39 0.38 0.25
Net realized and unrealized gain (loss) 0.67 1.23 0.04 (0.08) 1.00
-------- -------- -------- --------- --------
Total from investment operations 0.98 1.59 0.43 0.30 1.25
-------- -------- -------- --------- --------
Less distributions:
Dividends from net investment income (0.32) (0.34) (0.38) (0.38) (0.38)
Dividends from net realized gains (0.88) (0.04) (0.33) (0.52) (0.08)
In excess of accumulated net realized gains -- -- (0.16) -- --
-------- -------- -------- --------- --------
Total distributions (1.20) (0.38) (0.87) (0.90) (0.46)
-------- -------- -------- --------- --------
Change in net asset value (0.22) 1.21 (0.44) (0.60) 0.79
-------- -------- -------- --------- --------
Net asset value, end of period $9.87 $10.09 $8.88 $9.32 $9.92
======== ======== ======== ========= =========
Total return(2) 10.05% 18.14% 5.23% 2.62% 14.09%
Ratios/supplemental data:
Net assets, end of period (thousands) $370,929 $396,169 $386,515 $378,847 $217,432
Ratio to average net assets of:
Expenses 1.93% 1.93% 1.91% 1.91% 2.03%
Net investment income 3.06% 3.64% 4.32% 3.98% 3.73%
Portfolio turnover 111% 107% 90% 88% 44%
Average commission rate paid(3) $0.0515 N/A N/A N/A N/A
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(3) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
11
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Income and Growth Fund (the "Fund") is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as a diversified open-end management investment company. The Fund's
primary investment objective is to invest in a diversified group of
securities that are selected for current yield consistent with preservation
of capital. The Fund offers both Class A and Class B shares. Class A shares
are sold with a front-end sales charge of up to 4.75%. Class B shares are
sold with a contingent deferred sales charge which declines from 5% to zero
depending on the period of time the shares are held. Both classes of shares
have identical voting, dividend, liquidation and other rights and the same
terms and conditions, except that each class bears different distribution
expenses and has exclusive voting rights with respect to its distribution
plan. Income and expenses of the Fund are borne pro rata by the holders of
both classes of shares, except that each class bears distribution expenses
unique to that class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. Security valuation:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the last bid price. Debt securities are valued on the basis
of broker quotations or valuations provided by a pricing service which
utilizes information with respect to market transactions in comparable
securities, quotations from dealers, and various relationships between
securities in determining value. Short- term investments having a remaining
maturity of 60 days or less are valued at amortized cost which approximates
market. All other securities and assets are valued at their fair value as
determined in good faith by or under the direction of the Trustees.
B. Security transactions and related income:
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date or, in the case of certain foreign
securities, as soon as the Fund is notified. Interest income is recorded on
the accrual basis. Discounts are amortized to income using the effective
interest method. Realized gains and losses are determined on the identified
cost basis.
C. Income taxes:
It is the policy of the Fund to comply with the requirements of the Internal
Revenue Code (the "Code") applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders. In
addition, the Fund intends to distribute an amount sufficient to avoid
imposition of any excise tax under Section 4982 of the Code. Therefore, no
provision for federal income taxes or excise taxes has been made.
D. Distributions to shareholders:
Distributions to shareholders are recorded on the ex-dividend date. Income
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gain/loss, partnerships, and
losses deferred due to wash sales and excise tax regulations. Permanent book
and tax basis differences relating to shareholder distributions will result
in reclassifications to paid in capital.
E. Foreign currency translation:
Foreign securities, other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at
the trade date. The gain or loss resulting from a change in currency exchange
rates between the trade and settlement dates of a portfolio transaction is
treated as a gain or loss on foreign currency. Likewise, the gain or loss
resulting from a change in currency exchange rates between the date income is
accrued and paid is treated as a gain or loss on foreign currency. The Fund
does not separate that portion of the results of operations arising from
changes in exchange rates and that portion arising from changes in the market
prices of securities.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the Investment Adviser,
National Securities and Research Corporation, an indirect majority-owned
subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"), is entitled
to a fee at an annual rate of 0.70% of the average daily net assets of the
Fund for the first $1.0 billion and 0.65% for the second $1.0 billion.
12
<PAGE>
PHOENIX INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997 (Continued)
As Distributor of the Fund's shares, Phoenix Equity Planning Corp.
("PEPCO"), an indirect majority-owned subsidiary of PHL, has advised the Fund
that it retained net selling commissions of $56,591 for Class A shares and
deferred sales charges of $971,935 for Class B shares for the year ended
April 30, 1997. In addition, the Fund pays PEPCO a distribution fee at an
annual rate of 0.25% for Class A shares and 1.00% for Class B shares of the
average daily net assets of the Fund. The Distribution Plan for Class A
shares provides for fees to be paid up to a maximum on an annual basis of
0.30%; the Distributor has voluntarily agreed to limit the fee to 0.25%. The
Distributor has advised the Fund that of the total amount expensed for the
year ended April 30, 1997, $3,126,095 was earned by the Distributor and
$1,883,888 was earned by unaffiliated participants.
As Financial Agent of the Fund, PEPCO received a fee for bookkeeping,
administration, and pricing services at an annual rate of 0.03% of the
average daily net assets of the Fund through December 31, 1996, and starting
on January 1, 1997, at an annual rate of 0.05% of average daily net assets up
to $100 million, 0.04% of average daily net assets of $100 million to $300
million, 0.03% of average daily net assets of $300 million through $500
million, and 0.015% of average daily net assets greater than $500 million; a
minimum fee may apply. PEPCO serves as the Fund's Transfer Agent with State
Street Bank and Trust Company as sub-transfer agent. For the year ended April
30, 1997, transfer agent fees were $1,333,163 of which PEPCO retained
$496,785 which is net of fees paid to State Street.
At April 30, 1997, PHL and affiliates held 120 Class A shares and 17 Class B
shares of the Fund with a combined value of $1,348.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities and
options, for the year ended April 30, 1997 aggregated $883,564,825 and
$1,039,092,454, including $24,846,276 and $40,519,832 of U.S. Government and
Agency securities, respectively.
4. CAPITAL LOSS CARRYOVERS
Under current tax law, capital losses realized after October 31, 1996 may be
deferred and treated as occurring on the first day of the following fiscal
year. For the year ended April 30, 1997, the Fund deferred foreign currency
losses of $38,947.
5. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Fund has recorded several
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of the Fund and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of April 30, 1997,
the Fund decreased capital paid in on shares of beneficial interest by
$99,138, increased undistributed net investment income by $128,574 and
decreased accumulated net realized gains by $29,436.
TAX INFORMATION NOTICE (Unaudited)
For federal income tax purposes, 21.6% of the ordinary income dividends paid
by the Fund qualify for the dividends received deduction of corporate
shareholders.
For the fiscal year ended April 30, 1997, the Fund distributed $43,970,488
of long-term capital gain dividends.
This report is not authorized for distribution to prospective investors in
the Phoenix Income & Growth Fund unless preceded or accompanied by an
effective prospectus which includes information concerning the sales charge,
the Fund's record and other pertinent information.
13
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP (Price Waterhouse logo)
To the Trustees and Shareholders of
Phoenix Income and Growth Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Phoenix Income and Growth Fund (the "Fund") at April 30, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at April 30, 1997 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
June 10, 1997
14
<PAGE>
Phoenix Income and Growth Fund
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
William J. Newman, Senior Vice President
John M. Hamlin, Vice President
William E. Keen, III, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
National Securities & Research Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
Independent Accountants
Price Waterhouse LLP
160 Federal Street
Boston, Massachusetts 02110
<PAGE>
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Phoenix Income and Growth Fund
PO Box 2200
Enfield CT 06083-2200
(Phoenix Duff & Phelps logo)
PDP 743 (6/97)
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 001
<NAME> PHOENIX INCOME & GROWTH FUND CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-START> MAY-01-1996
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 723268
<INVESTMENTS-AT-VALUE> 783597
<RECEIVABLES> 43315
<ASSETS-OTHER> 138
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<TOTAL-ASSETS> 827050
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<OTHER-ITEMS-LIABILITIES> 2536
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<SHARES-COMMON-STOCK> 45801
<SHARES-COMMON-PRIOR> 48948
<ACCUMULATED-NII-CURRENT> 2320
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 27240
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 60329
<NET-ASSETS> 822367
<DIVIDEND-INCOME> 14393
<INTEREST-INCOME> 28310
<OTHER-INCOME> 0
<EXPENSES-NET> (12968)
<NET-INVESTMENT-INCOME> 29735
<REALIZED-GAINS-CURRENT> 57967
<APPREC-INCREASE-CURRENT> (2223)
<NET-CHANGE-FROM-OPS> 85479
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (18482)
<DISTRIBUTIONS-OF-GAINS> (39142)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3228
<NUMBER-OF-SHARES-REDEEMED> (11192)
<SHARES-REINVESTED> 4818
<NET-CHANGE-IN-ASSETS> (42016)
<ACCUMULATED-NII-PRIOR> 2997
<ACCUMULATED-GAINS-PRIOR> 40369
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5982
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 12968
<AVERAGE-NET-ASSETS> 854631
<PER-SHARE-NAV-BEGIN> 10.08
<PER-SHARE-NII> 0.40
<PER-SHARE-GAIN-APPREC> 0.66
<PER-SHARE-DIVIDEND> (0.40)
<PER-SHARE-DISTRIBUTIONS> (0.88)
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<PER-SHARE-NAV-END> 9.86
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 002
<NAME> PHOENIX INCOME & GROWTH FUND CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-START> MAY-01-1996
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 723268
<INVESTMENTS-AT-VALUE> 783597
<RECEIVABLES> 43315
<ASSETS-OTHER> 138
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 827050
<PAYABLE-FOR-SECURITIES> 2146
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2536
<TOTAL-LIABILITIES> 4682
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 732478
<SHARES-COMMON-STOCK> 37581
<SHARES-COMMON-PRIOR> 39263
<ACCUMULATED-NII-CURRENT> 2320
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 27240
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 60329
<NET-ASSETS> 822367
<DIVIDEND-INCOME> 14393
<INTEREST-INCOME> 28310
<OTHER-INCOME> 0
<EXPENSES-NET> (12968)
<NET-INVESTMENT-INCOME> 29735
<REALIZED-GAINS-CURRENT> 57967
<APPREC-INCREASE-CURRENT> (2223)
<NET-CHANGE-FROM-OPS> 85479
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (12058)
<DISTRIBUTIONS-OF-GAINS> (31925)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2617
<NUMBER-OF-SHARES-REDEEMED> (7730)
<SHARES-REINVESTED> 3431
<NET-CHANGE-IN-ASSETS> (25240)
<ACCUMULATED-NII-PRIOR> 2997
<ACCUMULATED-GAINS-PRIOR> 40369
<OVERDISTRIB-NII-PRIOR> 0
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<PER-SHARE-NAV-BEGIN> 10.09
<PER-SHARE-NII> 0.31
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<PER-SHARE-DIVIDEND> (0.32)
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<PER-SHARE-NAV-END> 9.87
<EXPENSE-RATIO> 1.93
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
